Cabinet Approves Nutrient-Based Fertilizer Subsidy for Rabi 2026-27

The Union Cabinet has approved a nutrient-based subsidy on fertilizers for the 2026-27 rabi season to protect farmers from volatile global market prices, with a budgetary requirement of approximately Rs 62,370.02 crore to ensure affordable supply.

Union Cabinet Approves Fertilizer Subsidy for Rabi 2026-27

Prime Minister Narendra Modi on Wednesday announced that the Union Cabinet has approved a nutrient-based subsidy on fertilisers for the 2026-27 rabi season, a move aimed at shielding farmers from volatile international market prices and ensuring affordable supplies. Narendra Modi, in a post on X, emphasised that the approval is designed to insulate domestic cultivators from global price fluctuations, ensuring that essential agricultural nutrients remain accessible at reasonable rates as the winter sowing season progresses.

"Our farmers across the country have always been our top priority. Even amid difficult conditions worldwide, we are leaving no stone unturned to make their lives easier. As part of these efforts, a nutrient-based subsidy on fertilisers for the 2026-27 rabi season has been approved today. This will shield our farmers from fluctuations in international prices while ensuring they continue to receive fertilisers at affordable, reasonable prices."

Budget and Implementation Details

Meanwhile, according to a press release, the Union Cabinet chaired by the Prime Minister Narendra Modi on Wednesday approved the Nutrient Based Subsidy (NBS) rates for RABI Season, 2026-27 (from October 01 2026 to 31 March 2027) on Phosphatic and Potassic (P&K) fertilisers. The tentative budgetary requirement for Rabi 2026-27 would be approximately Rs.62,370.02 crore. This is approximately Rs.24,417.73 crore more than the budgetary requirement for the Rabi 2025-26 season. The budget for Rabi 2025-26 was Rs.37,952.29 crore. This included benefits such as ensuring the availability of fertilisers to farmers at subsidised, affordable and reasonable prices, and rationalisation of subsidy on P&K fertilisers in view of recent trends in the international prices of fertilisers and inputs.

Ensuring Fertilizer Availability

The subsidy on P&K fertilisers, including DAP and NPKS grades, will be provided based on approved rates for Rabi 2026-27 (applicable from October 01 2026 to 31 March 2027) to ensure smooth availability of these fertilisers to the farmers at affordable prices. Government is making available 28 grades of P&K fertilisers, including DAP, to farmers at subsidised prices through fertiliser manufacturers/importers. The subsidy on P&K fertilisers is governed by the NBS Scheme w.e.f. 01.04.2010.

In accordance with its farmer-friendly approach, the Government is committed to ensuring the availability of P&K fertilisers to the farmers at affordable prices. In view of the recent trends in the international prices of fertilisers & inputs like Urea, DAP, MOP and Sulphur, the Government has decided to approve the NBS rates for Rabi 2026-27 w.e.f. October 01 2026 to 31 March 2027 on Phosphatic and Potassic (P&K) fertilisers, including DAP and NPKS grades, the release added. The subsidy would be provided to the fertiliser companies as per approved and notified rates so that fertilisers are made available to farmers at affordable prices.

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